Palantir Technologies Inc.’s stock has been among the biggest riders of the artificial-intelligence wave this year, and investors are about to find out how that craze has impacted its financials. Given a huge run-up in Palantir shares
so far in 2023, with the name up 183% on the year, one analyst is adopting a wait-and-see stance ahead of Monday’s earnings, which come out after the closing bell.
Jefferies analyst Brent Thill thinks earnings “expectations are achievable, but offer limited upside as there are still several unknowns in the business.” Thill listed the recovery timing of Palantir’s U.S. government business, the durability of its U.S. commercial growth and the pricing strategy for the company’s AI Platform as some of the uncertainties. All of these “could cause near-term choppiness in the financials,” wrote Thill, who has a hold rating on the stock and a $17 price target. Read from late July: Palantir is ‘the Messi of AI,’ says analyst who thinks its stock can jump 45% “Palantir has been one of the top beneficiaries of the AI wave, with its newly launched AI platform enabling a multimodal AI by combining existing predictive and causal AI insights with [large-language model] and [generative] AI capabilities,” Thill added in his report, though he said he’d prefer to stick to the sidelines “until more signs of business execution are shown.” Monness, Crespi, Hardt & Co. analyst Brian White said he expects Palantir’s commercial activity “to remain susceptible to the vicissitudes of the economy, while the timing of closing deals in the government market has proven unpredictable with lumpy revenue recognition.” Still, he thinks the company c …